Appendix C: Chanika Justin Information 

For the third client, Chanika Justin, your new boss wants you to prepare Form 1040 including Schedules A, B, and D, and all the necessary related forms. 

Taxpayer: Chanika Justin 

123 Cedar Lane 

Cincinnati, Ohio 44000 

Social Security No. 555-55-5555 

Date of Birth: July 4, 1995

 Chanika is single. She is an administrative assistant and also works weekends at a side job in an art gallery. She is not claimed as a dependent by anyone else. For last year, she gave you the following information:

 Income from last year: 

W-2 from administrative assistant job

Gross wages income: $100,000.00 

Federal withholding: $15,000.00 

W-2 from art gallery

Gross wages: $5,000.00 

Federal withholding: $1,000.00

 Interest income from bank: $150.00

 interest from brokerage firm: $2,000.00 

Qualified dividends from large U.S. Corporation: $3,000.00 

Chanika sold the following assets last year:

a. General Motors stock 1000 shares, bought in 1/1/2015 for $10,000.00, sold July 1 for $16,000.00. Reported on Form 1099-B with cost basis information included. 

b. Sold Facebook 500 shares, bought for $8,000.00 on February 1, 2016, sold for $6,000.00 on August 1 of last year. Reported on Form 1099-B with cost basis information included. 

c. Sold her car, which she bought July 13, 2016 for $25,000.00. She sold it on Craigslist 10/15, for $10,000.00 

d. Sold her fishing boat, which she paid $3,000.00 for on 3/15/14, for $4,000.00 on November 1st. 

Possible Deductions (you have to decide) 

1. Mortgage interest paid $12,000.00 

2. State and local income taxes paid $4,000.00 

3. Charitable contributions to a 501(c)(3) charities $6.000.00

 4. Casualty loss, her garage was destroyed by fire, which was a federally declared disaster, but not a "qualified disaster". Cost and the fair market value were $9,000.00. Insurance only paid $3,000.00. 

5. Property taxes on her home: $6,000.00